During 1998, the Senbet Discount Tire Company had gross sales of \($1\) million. The firm’s cost of goods sold and selling expenses were \($300,000\) and \($200,000,\) respectively. These figures do not include depreciation. Senbet also had notes payable of \($1\) million. These notes carried an interest rate of 10 percent. Depreciation was \($100,000.\) Senbet’s tax rate in 1998 was 35 percent.

a. What was Senbet’s net operating income?

b. What were the firm’s earnings before taxes?

c. What was Senbet’s net income?

d. What was Senbet’s operating cash flow?